Ixup accelerates growth plans after strong sales of BetStop gambling self-exclusion platform
Technology company Ixup (ASX: IXU) will accelerate its growth plans in 2025 following strong sales of its flagship BetStop platform, which created a path to cash breakeven.
The company entered the North American market during the first half of the financial year, securing a five-year, $10 million contract with iGaming Ontario to provide the online gambling centralised self-exclusion (CSE) platform for Canada’s largest gambling market.
Ixup said the planning phase of the program has been completed, with the solution build underway and on track for delivery.
First revenues
The contract represents the first revenues and near-term cash flow that Ixup will receive from the North American regulation technology market.
The company sees this sector as a major source of potential revenue growth in the near term from similar CSE opportunities.
The iGaming Ontario contract complements Ixup’s existing BetStop contract with the Australian Communications and Media Authority (ACMA) and is believed to underpin a promising revenue base for Ixup in coming years.
Self-exclusion register
BetStop is Australia’s national self-exclusion register that allows individuals to temporarily or permanently exclude themselves from online and phone wagering services.
Once they have opted out, gambling providers can no longer take bets from, open accounts with or send marketing materials to these customers.
BetStop was launched in August 2023 and has since enrolled over 36,000 users in Australia.
The platform accepted over 15 billion self-exclusion checks in its first 11 months of operation, with an average response time of less than 5 milliseconds per check.
Environmental JV
Ixup signed a multi-year agreement in September to provide its secure data engine technology integrated with Microsoft Azure to the Shared Environmental Analytics Facility (SEAF) project in Western Australia.
The project is managed by the WA Biodiversity Science Institute (WABSI) in a joint venture (JV) with leading science research organisations such as CSIRO, the state’s major universities and government departments.
SEAF remains in the pilot stage, with further information on a forward program plan, timeframe and annual goals expected from WABSI by the end of this quarter.
New projects
Ixup’s UK-based subsidiary datapowa secured three new projects during the period for Track, its sports sponsorship measurement tool.
These include a partnership valuation for a Saudi Pro League football team’s sponsor, a naming rights valuation for a US university football stadium and an in-venue asset analysis for a US National Football League stadium.
Advanced discussions are also underway with multiple parties for new opportunities relating to Track and Venn, which is a secure audience data collaboration platform that helps sports properties and their partners enhance their sponsorship decisions.
Net cash outflow
Ixup recorded a net cash outflow of $800,000 from operations for the three months to the end of December after $1.5m was deducted for non-recurring items and a rebalancing of working capital across the business.
The company was also impacted by the timing of cash receipts for the iGaming Ontario contract, which are yet to commence.
Cash receipts of $1.95m for the quarter were broadly in line with the previous period, reflecting the generally stable nature of the BetStop contract and Ixup’s other business divisions.
Cash and cash equivalents at the end of December amounted to $2.7m and are expected to fund the business through to positive cash flow later this year.